Restructuring cuts into Amgen profit in 3Q

THOUSAND OAKS, Calif. – For the quarter ended Sept. 30, Amgen Inc. reported a profit of $201 million, or 18 cents per diluted share, compared with the year-ago period’s $1.1 billion, or 94 cents per share.
The pharmaceutical company, which laid off more than 400 workers from its West Greenwich plant earlier this year, cited $1.0 billion in charges, mostly related to its ongoing restructuring, including $590 million for the write-off of in-process research and development at the newly acquired Alantos and Ilypsa; $290 million in restructuring charges for layoff costs, asset impairment, accelerated depreciation and losses on leased facilities, among other expenses; and a $90 million inventory write-off.
Total revenue was $3.6 billion, the same as in the year-ago period, Amgen said. Total product sales increased 1 percent to $3.52 billion. Other revenue was steady at $109 million.
U.S. sales fell 2 percent to $2.81 billion while international sales rose 12 percent to $715 million. Excluding the effect of favorable changes in foreign exchange rates, however, total product sales fell 1 percent and international sales grew only 5 percent. •